nasscom ilf 2016: attacking the digital disruptor

38
Attacking the Digital Disruptors an Sawhney ormick Foundation Professor of Technology logg School of Management

Upload: nasscom

Post on 17-Feb-2017

525 views

Category:

Technology


1 download

TRANSCRIPT

Page 1: NASSCOM ILF 2016: Attacking the Digital Disruptor

Attacking the Digital DisruptorsMohan SawhneyMcCormick Foundation Professor of TechnologyKellogg School of Management

Page 2: NASSCOM ILF 2016: Attacking the Digital Disruptor

1.What?

2.So What?

3.Now What?

3 Questions

Page 3: NASSCOM ILF 2016: Attacking the Digital Disruptor

Causes of Digital Disruption

Disruptor Strategies and Business Models

Dealing with Digital Disruption

Outline

Page 4: NASSCOM ILF 2016: Attacking the Digital Disruptor

We are entering a world where people, information, things and infrastructure will be connected via a broadband network, transforming work, life and business.

Connectivity Causes Disruption

Page 5: NASSCOM ILF 2016: Attacking the Digital Disruptor

The Evolution of Hyperconnectivity

Internet

of

Things

• 100 billion devices

Mobile

Internet

• 10 billion subscribers

Desktop

Internet

• 1 billion users

Page 6: NASSCOM ILF 2016: Attacking the Digital Disruptor

The Internet of Things is Already Here

Page 7: NASSCOM ILF 2016: Attacking the Digital Disruptor

Connected Fitness

Page 8: NASSCOM ILF 2016: Attacking the Digital Disruptor

The seamless connection of equipment, sensors, applications and devices to provide an interactive and personalized experience for consumers and improved efficiency and profitability for facility operators.

Connected Fitness

Page 9: NASSCOM ILF 2016: Attacking the Digital Disruptor

Wearables in clothingMuscle Effort SensorsBio Sensing Bra

Page 10: NASSCOM ILF 2016: Attacking the Digital Disruptor

Connected Fitness and Self-Quantification

The world of logging apps and sensor-enabled devices is entering the mainstream, enabling the quantification and the pursuit of well-being for everyone.

Page 11: NASSCOM ILF 2016: Attacking the Digital Disruptor

The integration of mobile technology, computing devices, and emerging delivery system capabilities into a patient-centered model of care.• Patient-centered personal health

management.• Typically includes a device or

smartphone application.• PHR and EHR integration is possible.• Particularly beneficial for conditions

where continual tracking is warranted, such as Diabetes, Asthma/COPD, Aging in Place, Medication Adherence.

Connected Health

Page 12: NASSCOM ILF 2016: Attacking the Digital Disruptor

Link glucose meter readings to patient records electronically.

This link ensures that readings are recorded correctly and allows for physicians to passively monitor a patient’s blood glucose.

Pilot studies show that this kind of application is correlated to a reduction of 5 points in blood glucose readings and a 1% reduction in HbA1c readings over a three-month period.

Example: Diabetes Monitoring

Page 13: NASSCOM ILF 2016: Attacking the Digital Disruptor

But this is just the beginning….

Wearables Smart Cars Smart Homes Smart Cities Vertical Applications

Page 14: NASSCOM ILF 2016: Attacking the Digital Disruptor

Causes of Digital Disruption

Disruptor Strategies and Business Models

Dealing with Digital Disruption

Outline

Page 15: NASSCOM ILF 2016: Attacking the Digital Disruptor

Types of Value in Digital Disruption

Economic Value• Price transparency• Usage-based pricing• Reverse auctions• Demand aggregation

Platform Value• Marketplaces• Crowdsourcing• Sharing economy• Peer-to-Peer

Experience Value• Personalization• Convenience• Automation• Immediacy

Page 16: NASSCOM ILF 2016: Attacking the Digital Disruptor

Digital Disruptor Value Proposition

Digital Distuptor Value Proposition

Choice

Cost

Convenience

Control

Customization

Community

Page 17: NASSCOM ILF 2016: Attacking the Digital Disruptor

Digital Disruption StrategiesSupply

Disruption

Business Model

Disruption

Channel Disruption

Price Disruption

Experience Disruption

Page 18: NASSCOM ILF 2016: Attacking the Digital Disruptor

Assessing Vulnerability: The Digital Vortex

Source: Global Center for Digital Business Transformation, IMD

Page 19: NASSCOM ILF 2016: Attacking the Digital Disruptor

Types of Digital Disruptors1. Disruptive Digital Startups2. Products as Software3. Innovative Incumbents4. Channel Disintermediators

Page 20: NASSCOM ILF 2016: Attacking the Digital Disruptor

1. Disruptive Entrants: UberQuestions Uber addressed:• Where’s the nearest cab?• How long do I have to wait?• Who is the driver?• What kind of car is it?• How much will it cost?• Do they take credit cards?• How much should I tip?• Can I split the cab fare?• Can I contact the driver?

Page 21: NASSCOM ILF 2016: Attacking the Digital Disruptor

2. Products as Software: Tesla

• Car as connected appliance• App to control the car• Over the Air software updates• Future-proof Hardware

Page 22: NASSCOM ILF 2016: Attacking the Digital Disruptor

3. Innovative Incumbents

Page 23: NASSCOM ILF 2016: Attacking the Digital Disruptor

4. Channel Disintermediators

Page 24: NASSCOM ILF 2016: Attacking the Digital Disruptor

Causes of Digital Disruption

Disruptor Strategies and Business Models

Dealing with Digital Disruption

Outline

Page 25: NASSCOM ILF 2016: Attacking the Digital Disruptor

4 Strategies to Deal with Digital Disruption

• Disrupt the Digital Disruptor

• Acquire a Digital Disruptor

• Integrate Digital with Physical• Think Like a Disruptor

Attack Acquire

AbsorbAdapt

Page 26: NASSCOM ILF 2016: Attacking the Digital Disruptor

Attack digital disruptors by creating a digital disruptor of your own

Leverage your assets and brand to create a model disruptors cannot copy

Compete asymmetrically using a Judo strategy

1. Attack - Disrupt your own business

Page 27: NASSCOM ILF 2016: Attacking the Digital Disruptor

Attack: HBO Fights Back!

HBO Streaming Service

Page 28: NASSCOM ILF 2016: Attacking the Digital Disruptor

2. Acquire: Keep Cannibals in the Family

+

Page 29: NASSCOM ILF 2016: Attacking the Digital Disruptor

Steps in Organizational Integration

Isolate Incubate

Infiltrate Integrate

Page 30: NASSCOM ILF 2016: Attacking the Digital Disruptor

Create a consistent web, mobile and social media experience

Leverage social media for in-store sales promotions

Link online commerce with retail stores

Design digitally enhanced physical brand experiences

3. Absorb: Integrate Digital with Physical

Page 31: NASSCOM ILF 2016: Attacking the Digital Disruptor

Designing Hybrid Experiences: Burberry• Brings digital world to life in

a physical space• Customers experience the

brand through immersive multimedia content like they do online

• RFID technology provides audio-visual content on selected items carrying microchips.

• Sales assistants use iPads to keep a log of purchase history and customer preferences.

Page 32: NASSCOM ILF 2016: Attacking the Digital Disruptor

Leveraging Social Media in the Store

Page 33: NASSCOM ILF 2016: Attacking the Digital Disruptor

Consistent Digital Experience: Nasty Gal

Page 34: NASSCOM ILF 2016: Attacking the Digital Disruptor

Digital customer strategies – Provide customers with an omnichannel customer experience, where they can choose how to engage at any time on any device. The channels must be integrated and contextual, with the ability to proactively engage on behalf of the consumer.

Digital enterprise strategies – Evolve the business processes to become a digital customer-first enterprise, with digital customer-facing processes, digital collaboration tools and a digital culture.

Digital operational strategies – Embrace technology that supports digital transformation. This includes an open architecture that allows the enterprise to integrate with third parties that may have different architectures running differently.

Becoming Digital

Page 35: NASSCOM ILF 2016: Attacking the Digital Disruptor

Question assumptions Embrace agile processes Build marketing into your products Leverage privileged assets Think big, start small, scale fast

4. Adapt: Learn from Digital Disruptors

Page 36: NASSCOM ILF 2016: Attacking the Digital Disruptor

The Agile Enterprise

Leadership – Change Mgmt.

Page 37: NASSCOM ILF 2016: Attacking the Digital Disruptor

Adapt or Die

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

- Charles Darwin

Page 38: NASSCOM ILF 2016: Attacking the Digital Disruptor

Thank you!